Importance of Management Controls

For any business to ensure that it meets its goals and objectives, it has to have management controls to ease in this process. It is the process by which an organization influences the employees to work under the set management processes to meet the desired objectives. As an organization, we have implemented the three essential management control that is feedforward, concurrent and feedback controls.

Feedforward controls

These are the preventive measures that focus on financial, material, and human resources in the organization. They help in identifying alterations before they happen and therefore allows corrective action to be taken before that problem arises. They can either be diagnostic or therapeutic. Therapeutic controls answer the question of what and why and helps in taking measures while diagnostic controls are concerned with what deviations have already occurred in the organization. It has helped us identify the skills of the employees and therefore crucial for the recruitment of new employees.

Concurrent controls

They are the steering controls that focus on employees tasks and behaviors by considering performance standards, rules and regulations. They help in solving a problem as it arises and therefore corrections and adjustments can be made. These controls help in ensuring that the desired results are met and at the real time. For instance, we have been able to provide that products produced are of the best quality.

Feedback controls

 Feedback controls are future-oriented that reviews information on whether the performance has met the established standards. The primary target of these controls is to avoid and prevent mistakes in the future. We have been able to monitor our profits monthly and therefore coming up with a plan on how to improve the benefit at a given period of times.

Conclusion

In conclusion, organization controls, have enhanced increased productivity and efficiency, financial stability and it is therefore needed in all the functions of management.

References

Sihag, V., & Rijsdijk, S. (2018). Organizational Controls and Performance Outcomes. Journal of Management Studies.

Ahrens, T. (2018). Management Controls that Anchor other Organizational Practices. Contemporary Accounting Research, 35(1), 58-86.